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Strategies & Market Trends : Value Investing

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To: J Mako who wrote (44797)10/4/2011 6:57:34 PM
From: Sergio H   of 78670
 
(It's apparent to me what patterns we see depend on the time scale.)

Yes, time scale is appropriate and you can even use daily charts, or hourly or even minute depending on your style of trading.

And what's the rationale/theory behind it?

Look for the simple trend. Is the stock, index or whatever going up, down or moving sideways.

Is 3-6 months the right time scale when one looks at the charts?

For a value investor, it could be. If you see a stock that you are interested in from a value perspective and it hit a trend low with volume, this may be an excellent point to purchase.

EK was an excellent example earlier this week. But maybe that was just for daytrading. Buying at that bottom was a great opportunity there, but what the participants in this thread have in their tool chest affords an opportunity to use technicals to find good buying opportunities and value analyses to find stocks worth buying when the technicals are wrong.
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